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Part 1: Low Rates, Assets Inflate

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By Andrew Macken, Christopher Demasi & Amit Nath

 

In one sense, the position in which the western world finds itself today – with historically low interest rates, including many bonds trading with negative yields – is no different to the position we have observed over the last decade. But, in our view, one very important thing has changed. Up until late last year, most market participants – including investors and policymakers – believed the environment was temporary.

The fourth quarter of 2018 challenged this belief. Indeed, the fourth quarter of 2018 demonstrated this environment was much more likely to be the status quo for a protracted period of time.

We have identified five key structural drivers of the low interest rate environment we are observing today. These drivers are affecting all economies to some extent and, we argue, a number of major global economies to a severe extent.

Click here to DOWNLOAD the first part of this two-part Whitepaper series and explore our outlook on the direction in which the global interest rates are heading.

Disclaimer :

This document was prepared by Montaka Global Pty Ltd (ACN 604 878 533, AFSL: 516 942). The information provided is general in nature and does not take into account your investment objectives, financial situation or particular needs. You should read the offer document and consider your own investment objectives, financial situation and particular needs before acting upon this information. All investments contain risk and may lose value. Consider seeking advice from a licensed financial advisor. Past performance is not a reliable indicator of future performance.

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